I just stumbled across this because my wife saw a couple calls from this number on the caller id and looked it up. I actually invested with this company, Western Reach about a year ago and they were just calling to update me. Reading this though I called back and asked them about it. Turns out it was just a filing error and has all been taken care of. It wasn't for Western though it was for another company that the owners were involved with 4 years ago. As far as my investment goes, they've got a few properties in the fund now and I've actually gotten 2 small dividend checks. They're buying in Vegas now and the rental rate there is really good there. . So far I'm very happy.......we'll see where this goes.
Salesperson calling to sell 'shares' of a real estate venture that they are marketing.
Pitch is that they are raising money to buy distressed/foreclosed apartment and multi-family buildings as an investment, with the hopes of later on creating some type of 'investment vehicle' out of it - as in making it into a REIT or some other type of publicly traded item. In the mean time, they tout that they will be paying great dividends to tose investors that get in on the ground floor.
Now the bad news.
Two states have issued Cease and Desist orders for these guys. They were claiming to be purchasing multi-family units and apartments, but were actually only buying low end single family homes instead.
They are not allowed to be currently doing business in their own state according to the CA Dept. of Corporations. That obviously didn't slow them down. They just started calling people in other states which haven't asked them to stop operating yet.
The figures are nice, but they do not reflect the reality of the current real estate market. They do not account for high levels of vacancy and what would happen to the proported 'dividends' should the units not hit their occupancy targets.
A nice idea, but still using OPM for capital. I wouldn't rule this out - I just wouldn't do it with these guys. After all, if they can't operate according to the rules, how could you expect them to treat you and your money honesty and fairly?
I just stumbled across this because my wife saw a couple calls from this number on the caller id and looked it up. I actually invested with this company, Western Reach about a year ago and they were just calling to update me. Reading this though I called back and asked them about it. Turns out it was just a filing error and has all been taken care of. It wasn't for Western though it was for another company that the owners were involved with 4 years ago. As far as my investment goes, they've got a few properties in the fund now and I've actually gotten 2 small dividend checks. They're buying in Vegas now and the rental rate there is really good there. . So far I'm very happy.......we'll see where this goes.